MANILA, Philippines – Is the Philippines ready for full economic integration into Association of Southeast Asian Nations (ASEAN) Economic Community by 2015?
Nestor Tan, president of BDO Unibank, doesn’t think so.
At the Management Association of the Philippines forum, Tan said many Philippine companies are not ready to compete with other ASEAN companies, so he sees economic integration as a threat.
“I’m not one of those who are looking forward to Asian and ready to embrace it because, honestly, I don’t think our industries are prepared. I honestly don’t know yet how we’re going to compete when our borders opened up,” he said
Tan noted the Philippines is a “very attractive market,” and Philippine companies, not all, are ready to “protect their turf.”
The ASEAN is pursuing the integration of economies among the 10-member states with the establishment of an ASEAN Economic Community by December 2015. ASEAN is composed of Philippines, Singapore, Malaysia, Indonesia, Cambodia, Brunei, Laos, Thailand, Vietnam, and Myanmar.
ASEAN companies will then be allowed to enter each other’s markets, with lowered tarriffs and capital market integration.
However, Tan noted Philippine companies, which mostly cater to US and Chinese markets, will be alienated in ASEAN since it does not do much trading with other Southeast Asian nations.
“Most of our companies, particularly the middle market and small businesses, trade with China and the US. Geographically, we’re not landlocked, if you look at most of the ASEAN countries, they are in the Western side, most of them are closed to each other… We’re sort of isolated,” Tan said.
The BDO official noted that Philippine companies and institutions should be strengthened to be able to compete with ASEAN companies.
“If integration is just a matter of time, how do we buy time so that we strengthen our institutions to be able to compete. Second, what is our vision for our industries, are we just going let the market take control of our own industries?” he said. –ABS-CBNnews.com
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